Is Coal India stock a buy right now?
Coal India Limited (NSE: COALINDIA) stands as India’s premier coal producer and one of the largest listed public sector enterprises, with a current share price hovering around ₹385.60 and a robust average daily trading volume of approximately 6.15 million shares. Despite a moderate correction over the past year, the stock’s recent stability is underpinned by strategic partnerships, new project tenders, and the company’s ongoing alignment with government energy goals. While the Q3 FY2025 saw a softening in net profit, the upcoming Q4 results and expected final dividend are generating considerable market anticipation. Investor sentiment remains steady, drawing optimism from Coal India’s near-monopoly status, consistently high dividends, and virtually debt-free balance sheet—a rarity in the volatile commodity sector. The energy sector at large is navigating a cautious shift towards renewables, but coal's crucial role in India’s power matrix persists. Reflecting overall conviction, the consensus of more than 33 national and international banks has set a target price of ₹501 for Coal India, suggesting a constructive outlook for investors valuing income resilience and stability. These dynamics indicate that Coal India merits careful consideration in a diversified portfolio, especially for those seeking reliable yield in a changing energy landscape.
- Market leader in Indian coal production with a near-monopoly position.
- Consistently high dividend yield, currently at 6.85%, outpacing market averages.
- Virtually debt-free, ensuring financial stability and strong cash reserves.
- Essential for India’s energy security amid growing power demand.
- Significant government ownership provides policy support and operational backing.
- Short-term technical indicators reflect a neutral to mildly bearish outlook.
- Long-term demand faces gradual pressure from India’s renewable energy transition.
- What is Coal India?
- How much is Coal India stock?
- Our full analysis on Coal India </b>stock
- How to buy Coal India stock in India?
- Our 7 tips for buying Coal India stock
- The latest news about Coal India
- FAQ
Why trust HelloSafe?
At HelloSafe, our expert has been closely monitoring the performance of Coal India for more than three years. Every month, hundreds of thousands of users across India rely on us to interpret market trends and highlight the best investment opportunities. Our analyses are intended purely for informational purposes and do not constitute investment advice. In line with our ethical charter, we have never been, and will never be, financially compensated by Coal India.
What is Coal India?
| Indicator | Value | Analysis |
|---|---|---|
| 🏳️ Nationality | Indian | State-owned, enjoys strong domestic market presence and policy backing in India. |
| 💼 Market | NSE, BSE (Ticker: COALINDIA, 533278) | Major listing ensures good liquidity and visibility for investors in India. |
| 🏛️ ISIN code | INE522F01014 | Unique global identifier facilitates safe, transparent, and efficient share trading. |
| 👤 CEO | P Mallikarjuna Prasad | Veteran leader, guiding company through both operational expansion and strategic challenges. |
| 🏢 Market cap | ₹2.37 trillion (approx. $28.5 billion) | Large market cap underscores its dominant role but may limit aggressive growth. |
| 📈 Revenue | ₹1,768.50 crore (FY2024, standalone) | Revenue growth is moderate; regulatory and demand trends could impact future earnings. |
| 💹 EBITDA | ₹41,601 crore (Q3 FY2025, standalone) | Strong operating profit reflects scale, but margin pressure is a concern for investors. |
| 📊 P/E Ratio | 6.89 | Undervalued compared to peers, but signals low growth expectations and industry risk. |
How much is Coal India stock?
The price of Coal India stock is rising this week. At present, Coal India trades at ₹385.60 per share, reflecting a 0.31% gain over the last 24 hours but a -2.21% change over the past week.
| Metric | Value |
|---|---|
| Market capitalisation | ₹2.37 trillion |
| Average 3-month daily volume | 6.15 million shares |
| P/E Ratio | 6.89 |
| Dividend yield | 6.85% |
| Beta | -0.01 |
Coal India’s very low beta of -0.01 indicates extremely low volatility compared to the broader market.
Investors should note the current stability but consider both the strong dividend potential and the industry’s evolving long-term outlook.
Check out the best brokers in India!Compare brokersOur full analysis on Coal India stock
In our rigorous review of Coal India’s latest financial performance and stock evolution over the past three years, we have harnessed a multifaceted framework—integrating key financial metrics, technical indicators, market context, and peer analysis through proprietary algorithms. This comprehensive approach reveals fresh perspectives on the stock as we move into FY2025. So, why might Coal India once again become a strategic entry point into India’s dynamic energy and infrastructure sector in 2025?
Recent Performance and Market Context
Coal India Limited (CIL), the backbone of India's coal supply, has recently navigated a transitional market period marked by challenges and renewed opportunities. In the last twelve months, CIL’s share price has corrected by 16.74%, settling near ₹385.60 as of May 2025—comfortably above its key support of ₹358.87 but below its recent peaks. This retracement contrasts with its historic highs (₹544.70), suggesting that much of the downside is already priced in, creating an interesting base for new investors.
Despite modest underperformance, the company’s market capitalization remains robust at ₹2.37 trillion, signaling resilience in its core business and faith from institutional holders. April 2025 saw a marginal rise in coal production, confirming operational stability, even as national hydro-generation and renewables growth exert sectoral pressure. Additionally, collaborations—such as new pacts with Damodar Valley Corporation and TMC Mineral Resources—underscore a proactive approach to future-proofing its business.
The broader Indian energy sector remains essential and supported by government policy, with domestic coal continuing as the anchor for power generation. With plans to enhance coal output to 1.3–1.5 billion tonnes by FY2030, Coal India’s indispensable role is reaffirmed, supported by clear regulatory signals and expected infrastructure stimulus. While the equity market at large undergoes volatility, Coal India’s negative beta (-0.01) highlights exceptional stability and insulation from broader swings, enhancing its appeal in uncertain climates.
Technical Analysis
Coal India’s current technical posture reflects a consolidation phase—often a precursor to renewed momentum. The stock trades close to its 50-day and 100-day Simple Moving Averages (SMA) at ₹384.02 and ₹384.39, respectively, suggesting that recent sellers may be exhausted as the price stabilizes above these moving averages. This clustering near medium-term SMA levels indicates a maturation of the downtrend and the potential emergence of bullish setups upon positive catalysts.
The Relative Strength Index (RSI) at 45.33 places CIL comfortably in neutral ground, neither overbought nor oversold. This neutrality is echoed by the Moving Average Convergence Divergence (MACD) (12,26,9) at 0.31, which, despite a recent bearish crossover, appears poised for reversal should positive sentiment return. Moreover, the stochastic oscillator’s %K at 29.50 is fast approaching oversold territory—a classic signal for astute investors to watch for reversals as demand regains momentum.
Structurally, ₹358.87 represents formidable support, with the next major band at ₹332.43—a zone guarded by significant previous volume. On the upside, a close above ₹408.87 could open the path to the 200-day SMA (₹433.47), where supply zones may start to thin out. The absence of recent “golden cross” or “death cross” patterns keeps the medium-term outlook open, reinforcing the sense that Coal India is in the late stages of correction before a potential positive inflection.
Fundamental Analysis
Coal India’s fundamentals remain a compelling anchor for renewed market interest. For FY2024, the company reported revenues of ₹1,768.50 crore (standalone) and an exceptional net profit of ₹15,766.83 crore—translating to annual EPS of ₹25.58. Although Q3 FY2025 delivered a year-on-year net profit decline amid changing demand patterns, the absolute earnings power remains striking.
A price-to-earnings (P/E) ratio of 6.89 offers a clear value proposition against sector and market averages, suggesting that much of the industry headwinds are now discounted. The company’s price-to-book ratio of 2.46 and a return on equity nearing 92.66% reflect strong capital efficiency—traits not easily replicated by peers. Coal India's dividend profile remains a central draw with a trailing annual yield of 6.85% and a payout ratio below 50%—a sign of both prudence and commitment to shareholder rewards.
Operationally, Coal India’s near-monopoly status is unparalleled in India, enabling significant pricing power and production security. Its balance sheet, once again virtually debt-free with ₹370.3 billion in cash reserves, provides a cushion to ride out industry transition periods and invest in modernization. Joint ventures and diversification into energy adjacencies further reduce risk concentration and open pathways for long-term value creation.
Volume and Liquidity
Coal India’s average daily trading volume—consistently above 6 million shares—provides strong confirmation of market confidence and interest from both retail and institutional investors. Such liquidity ensures tight spreads and rapid price discovery, making the stock highly accessible for various investment strategies.
The current public float stands at close to 37%, with significant institutional holdings (notably LIC at 9.79%) reinforcing pricing stability. This liquidity profile, along with the government’s substantial 63.13% holding, translates to a balanced supply-demand dynamic that supports dynamic valuation while firmly anchoring downside risks.
Catalysts and Positive Outlook
Looking ahead, several catalysts could underpin a new bullish cycle for Coal India:
- Q4 FY2025 earnings and final dividend announcement (May 7, 2025): Consensus expectations are cautiously optimistic for stability, and a potential special dividend could re-ignite interest.
- Strategic production targets: While FY2025 production (806–810 MT) is slightly below original estimates, broader moves toward 1.3–1.5 billion tonnes as per the Ministry of Coal’s roadmap solidify long-term growth underpinned by government policy.
- Project pipeline: Tenders for new projects aimed for commissioning by FY2027 promise operational growth and revenue diversification.
- ESG and modernization: Investments in cleaner technologies, digital transformation, and improved environmental practices set the stage for enhanced efficiency and potential mitigation of regulatory risks.
- Robust partnership ecosystem: Recent tie-ups and joint ventures reflect a commitment to operational enhancement and risk-sharing, further insulating the firm against sectoral headwinds.
All these drivers—when combined with persistently high dividend payouts and strong state backing—paint a scenario where upside potential is substantially de-risked.
Investment Strategies
Coal India offers tactical and strategic entry possibilities across time horizons:
- Short-Term: Given the proximity to major support zones and stabilizing technicals, the stock seems primed for a rebound, especially ahead of Q4 results. Short-term traders may find value in support-based entries with the potential for a rapid upside to the ₹408–₹432 resistance zone.
- Medium-Term: Dividend-seeking investors can capture both recurring high yields and scope for capital appreciation, particularly as Q4 earnings and policy initiatives unfold. The current price offers an attractive entry relative to its multi-year moving averages and valuation multiples.
- Long-Term: With ambitious government targets for coal output, sustained relevance in India’s energy mix, ongoing investments in modernization, and a nearly debt-free structure, Coal India constitutes an ideal core holding for portfolios seeking steady cash flows and economic moat. The low beta further enhances its risk/reward profile amid broader market volatility.
Initiating positions near the current technical base—or scaling in on further weakness toward established supports—appears to optimize risk-adjusted returns. Furthermore, alignment with upcoming corporate events may provide additional torque for medium- to long-term capital gains.
Is it the Right Time to Buy Coal India?
In sum, Coal India’s dominant position, robust dividend policy, undervalued metrics (P/E of 6.89 with sustained high ROE), and strategic government support compose a remarkably resilient investment case—especially at current levels following a healthy consolidation. The stock’s stabilization near key support, deeply attractive yield, and anticipation around near-term catalysts (notably the May 2025 results and pipeline expansion) suggest renewed promise for upward price re-rating.
While some short-term technical caution remains warranted, the converging backdrop of ample liquidity, operational discipline, sectoral indispensability, and visionary project pipeline creates a fertile environment for accumulation. Investors seeking a blend of income, defensive ballast, and exposure to India's ongoing infrastructure and energy evolution may find Coal India at current valuations to represent an excellent opportunity.
Given the sum of its strengths and the array of forthcoming catalysts, Coal India stock is increasingly positioned for a potential new bullish phase in 2025—making it a compelling consideration for those aiming to participate in India’s energy ascendancy, all while benefiting from sustained dividend flows and a margin of safety rarely matched among large-cap stocks. With conviction in its long-term fundamentals and imminent corporate drivers, the case for renewed investor interest appears stronger than ever.
How to buy Coal India stock in India?
To buy Coal India Limited shares online is now straightforward and highly secure in India thanks to regulated, SEBI-licensed brokers. You can invest in COALINDIA either by purchasing shares outright (spot buying), or by trading Contracts for Difference (CFDs), each suiting different objectives and risk profiles. Whether you prefer to hold shares for dividends or seek leveraged exposure, both routes are accessible via popular Indian trading platforms. In choosing the best fit for you, it's essential to compare brokers on fees, tools, and available instruments — you will find a detailed broker comparison further down the page.
Spot Buying
What is spot (cash) buying of Coal India stock?
When you opt for spot buying, you directly purchase actual shares of Coal India Limited on the National Stock Exchange (NSE/BSE) in your own Demat account. This method allows you to become a part-owner of the company, receive annual dividends, and benefit from any long-term appreciation in share price. Typically, Indian brokers charge a flat commission per order — usually in the range of ₹20 to ₹50 per trade, alongside nominal transaction taxes.
Example with ₹1,000 investment:
Suppose the Coal India share price is ₹385.60 (NSE, May 2025). With ₹1,000, factoring in a ₹40 brokerage fee, you could purchase approximately 2 shares of Coal India (₹385.60 × 2 = ₹771.20, plus brokerage = ₹811.20, leaving some margin for taxes/charges).
✔️ Gain scenario:
If the share price rises by 10%, your investment increases to about ₹1,100 (₹1,000 × 1.10).
Result: +₹100 gross gain, or +10% on your initial outlay (excluding taxes).
Trading via CFDs
What is CFD trading on Coal India?
CFDs (Contracts for Difference) are financial instruments offered by select regulated brokers that let you speculate on Coal India's price movements — up or down — without owning the underlying share. CFDs offer leverage, so you can control a larger position with a smaller deposit. Key costs include the spread (difference between buy and sell price) and overnight financing if your position is held beyond a day.
Example with ₹1,000 investment and 5x leverage:
You open a CFD position on Coal India shares using ₹1,000 margin at 5x leverage. This means your total market exposure is ₹5,000.
✔️ Gain scenario:
If Coal India’s share price rises by 8%, your CFD position gains 8% × 5 = 40%.
Result: +₹400 profit on a ₹1,000 stake (excluding applicable fees and daily financing costs).
Final Advice
Before investing, always compare brokers for their commission rates, spreads, available platforms, and investor protection measures. Each brokerage has its own fee structure, minimum deposit, and access to either cash equities or CFDs. Your best choice will depend on your goals: long-term holders may prefer direct shares for dividends and voting rights, while active traders might leverage CFDs for short-term opportunities. Explore our comprehensive broker comparison chart further down this page to help you make an informed, confident decision.
Is EightCap reliable?
Yes, EightCap is a trusted platform regulated by ASIC (Australia) and FCA (United Kingdom). Since 2009, it has ensured the security of funds with segregated accounts and a rigorously regulated trading environment. If you are looking for a reliable broker to start with, EightCap is a safe bet, recognised in the industry.
Why choose EightCap?
EightCap combines performance and flexibility. The platform offers a wide selection of assets and tools such as MT4 and MT5, perfect for demanding traders. Are you a beginner? No problem: its demo accounts and innovative integrations like TradingView make learning intuitive and effective.
What are the fees at EightCap?
At EightCap, fees depend on the account you choose: Raw accounts display spreads from 0 pip, with a commission of $3.5 per lot. Standard accounts have slightly higher spreads but no commissions. No fees on deposits or withdrawals, for clear and controlled costs.
Who is EightCap for?
Whether you are a beginner or an experienced trader, EightCap is designed to meet your needs. Are you starting out? Take advantage of guides and demo accounts to understand the basics. Are you more advanced? Tools like MT5 and competitive spreads will allow you to go further in your strategies.
Is it easy to withdraw money from EightCap?
Withdrawing your earnings on EightCap is quick and easy. Requests are processed within 24 hours and you can use flexible options such as bank transfer, cards or e-wallets. Security and speed are at the heart of the service.
Is EightCap reliable?
Yes, EightCap is a trusted platform regulated by ASIC (Australia) and FCA (United Kingdom). Since 2009, it has ensured the security of funds with segregated accounts and a rigorously regulated trading environment. If you are looking for a reliable broker to start with, EightCap is a safe bet, recognised in the industry.
Why choose EightCap?
EightCap combines performance and flexibility. The platform offers a wide selection of assets and tools such as MT4 and MT5, perfect for demanding traders. Are you a beginner? No problem: its demo accounts and innovative integrations like TradingView make learning intuitive and effective.
What are the fees at EightCap?
At EightCap, fees depend on the account you choose: Raw accounts display spreads from 0 pip, with a commission of $3.5 per lot. Standard accounts have slightly higher spreads but no commissions. No fees on deposits or withdrawals, for clear and controlled costs.
Who is EightCap for?
Whether you are a beginner or an experienced trader, EightCap is designed to meet your needs. Are you starting out? Take advantage of guides and demo accounts to understand the basics. Are you more advanced? Tools like MT5 and competitive spreads will allow you to go further in your strategies.
Is it easy to withdraw money from EightCap?
Withdrawing your earnings on EightCap is quick and easy. Requests are processed within 24 hours and you can use flexible options such as bank transfer, cards or e-wallets. Security and speed are at the heart of the service.
Is Avatrade reliable?
AvaTrade is a trusted broker regulated by major institutions, including the AMF in France, the Central Bank of Ireland, ASIC (Australia), and FSA (Japan). Active since 2006, it offers solid guarantees, including the segregation of client funds and strict compliance with international standards. With over 300,000 active users, it inspires confidence in both novice and experienced traders.
Why choose Avatrade?
AvaTrade combines simplicity and expertise. Tutorials, demo accounts, and free training help you learn at your own pace. Advanced tools like MT4/MT5 offer endless possibilities as you progress. You don’t need to be an expert: AvaTrade adapts to you.
What are the fees at Avatrade?
AvaTrade offers simple and affordable fees: competitive fixed spreads, no deposit or withdrawal fees, and inactivity costs that can be avoided with regular use. You can focus on learning and your investments without surprises when it comes to paying.
Who is Avatrade for?
AvaTrade is for everyone: beginners can take advantage of detailed educational content and demo accounts, while advanced traders will find tools like automated trading or Vanilla options. If you are looking for a reliable platform to develop your skills or diversify your assets, AvaTrade is an excellent choice.
Is it easy to withdraw money from Avatrade?
Yes, AvaTrade offers a fast and secure withdrawal process. Once your account is verified, your requests are processed within 1 to 2 business days. You can use various options such as bank cards, wire transfers, or e-wallets. Everything is designed to provide you with fast, clear, and secure access.
Is Avatrade reliable?
AvaTrade is a trusted broker regulated by major institutions, including the AMF in France, the Central Bank of Ireland, ASIC (Australia), and FSA (Japan). Active since 2006, it offers solid guarantees, including the segregation of client funds and strict compliance with international standards. With over 300,000 active users, it inspires confidence in both novice and experienced traders.
Why choose Avatrade?
AvaTrade combines simplicity and expertise. Tutorials, demo accounts, and free training help you learn at your own pace. Advanced tools like MT4/MT5 offer endless possibilities as you progress. You don’t need to be an expert: AvaTrade adapts to you.
What are the fees at Avatrade?
AvaTrade offers simple and affordable fees: competitive fixed spreads, no deposit or withdrawal fees, and inactivity costs that can be avoided with regular use. You can focus on learning and your investments without surprises when it comes to paying.
Who is Avatrade for?
AvaTrade is for everyone: beginners can take advantage of detailed educational content and demo accounts, while advanced traders will find tools like automated trading or Vanilla options. If you are looking for a reliable platform to develop your skills or diversify your assets, AvaTrade is an excellent choice.
Is it easy to withdraw money from Avatrade?
Yes, AvaTrade offers a fast and secure withdrawal process. Once your account is verified, your requests are processed within 1 to 2 business days. You can use various options such as bank cards, wire transfers, or e-wallets. Everything is designed to provide you with fast, clear, and secure access.
Is Vantage reliable?
Vantage is a reliable broker, regulated by recognized authorities such as ASIC (Australia) and FCA (United Kingdom). It stands out for the security of its client accounts, protected by top-tier banks, and its commitment to transparency. With over 15 years of experience, Vantage is a trustworthy platform.
Why choose Vantage?
Vantage distinguishes itself by its balance between accessibility and professional tools. Beginners benefit from support with demo accounts and educational resources, while experienced traders appreciate the competitive spreads, fast execution, and advanced platforms like MT4/MT5. With a varied range of assets and transparent fees, Vantage caters to a wide audience seeking reliable and high-performance trading conditions.
What are the fees at Vantage?
The fees at Vantage are adapted to everyone. On ECN accounts, spreads start at 0 pip with a commission of $3 per lot. Standard accounts offer slightly higher spreads, but without commission. No deposit or withdrawal fees are applied, and the cost of inactivity is limited. With Vantage, you keep control of your costs to invest effectively.
Who is Vantage for?
Vantage is perfect for traders looking for professional conditions, while remaining accessible to beginners. If you want a fast platform, competitive fees and advanced tools, Vantage is an excellent choice. Whether you are learning or perfecting your strategies, you will find the necessary resources.
Is it easy to withdraw money from Vantage?
Withdrawing funds from Vantage is fast and secure. Requests are processed in less than 48 hours and you can choose between bank transfer, cards or electronic wallets. The platform guarantees smooth transactions and reduced fees, allowing you to easily access your earnings.
Is Vantage reliable?
Vantage is a reliable broker, regulated by recognized authorities such as ASIC (Australia) and FCA (United Kingdom). It stands out for the security of its client accounts, protected by top-tier banks, and its commitment to transparency. With over 15 years of experience, Vantage is a trustworthy platform.
Why choose Vantage?
Vantage distinguishes itself by its balance between accessibility and professional tools. Beginners benefit from support with demo accounts and educational resources, while experienced traders appreciate the competitive spreads, fast execution, and advanced platforms like MT4/MT5. With a varied range of assets and transparent fees, Vantage caters to a wide audience seeking reliable and high-performance trading conditions.
What are the fees at Vantage?
The fees at Vantage are adapted to everyone. On ECN accounts, spreads start at 0 pip with a commission of $3 per lot. Standard accounts offer slightly higher spreads, but without commission. No deposit or withdrawal fees are applied, and the cost of inactivity is limited. With Vantage, you keep control of your costs to invest effectively.
Who is Vantage for?
Vantage is perfect for traders looking for professional conditions, while remaining accessible to beginners. If you want a fast platform, competitive fees and advanced tools, Vantage is an excellent choice. Whether you are learning or perfecting your strategies, you will find the necessary resources.
Is it easy to withdraw money from Vantage?
Withdrawing funds from Vantage is fast and secure. Requests are processed in less than 48 hours and you can choose between bank transfer, cards or electronic wallets. The platform guarantees smooth transactions and reduced fees, allowing you to easily access your earnings.
Our 7 tips for buying Coal India stock
| Step | Specific tip for Coal India |
|---|---|
| Analyze the market | Review Coal India’s recent financial results, valuation metrics, and industry outlook; emphasize its strong dividend yield and market position despite short-term technical weakness. |
| Choose the right trading platform | Pick a SEBI-registered Indian broker that offers low brokerage fees, a user-friendly app, and easy access to NSE/BSE for trading Coal India shares securely. |
| Define your investment budget | Allocate funds considering Coal India’s low volatility and high dividend yield; diversify your total portfolio to manage risk from sector-specific factors. |
| Choose a strategy (short or long term) | Prefer a medium-to-long-term approach to benefit from Coal India’s consistent dividends and dominant position, while monitoring sector shifts towards renewables. |
| Monitor news and financial results | Stay updated on Coal India’s quarterly earnings—especially the upcoming Q4 FY2025 announcement and dividend declarations—as these events often influence share price. |
| Use risk management tools | Set a price alert or stop-loss order near key support levels (e.g., ₹358.87) to protect your capital against sudden downside moves. |
| Sell at the right time | Consider booking profits on technical rallies near resistance levels (e.g., ₹408.87), or after major positive news, and reassess your holding before key policy or regulatory changes. |
The latest news about Coal India
Coal India’s high dividend yield of 6.85% underscores its appeal for income-focused Indian investors. With trailing annual dividends amounting to ₹26.35 per share and a robust payout pattern—most recently ₹21.00 per share across three installments in FY2025—the company remains consistent in rewarding shareholders. This aligns with a five-year average yield of 9.02%, markedly above the market average, consolidating Coal India’s positioning as a dividend stalwart on the Indian bourses. This is reinforced by a healthy payout ratio of nearly 47% and the company's substantial cash reserves of ₹370.3 billion, which together support ongoing dividend sustainability.
Coal India’s production trajectory remains positive, registering a marginal rise in coal output for April 2025 despite sectoral headwinds. This operational stability is significant for an Indian context, providing assurance of continued coal supply—critical for national power generation needs. Contemporary strategic initiatives include tenders for new project expansions and partnerships, such as recent agreements with Damodar Valley Corporation and TMC Mineral Resources. These collaborations signal Coal India’s intent to enhance efficiency and broaden its operational footprint, addressing both current energy demands and longer-term sustainability.
The company celebrates its 50th anniversary with the unveiling of a forward-looking vision aligned with national energy goals. Coal India has reaffirmed its commitment to government production targets, aiming for 806-810 million tonnes in FY2025 and positioning itself within India’s broader ambition to secure 1.3 billion tonnes of domestic output by FY2027. These objectives not only underpin the company’s critical role in India’s coal ecosystem but also suggest ongoing relevance despite the global energy transition, especially given strong government support and a near-monopoly supply status.
Coal India’s strong financial fundamentals are evident, with low leverage, a low P/E ratio of 6.89, and a dominant market position. The company remains virtually debt-free and consistently generates positive cash flow, translating into an impressive return on equity of over 92%. These metrics indicate value for investors and reinforce the safety of the company’s dividend, making it a particularly attractive holding as Indian markets search for resilient, income-generating stocks in uncertain conditions.
Analyst focus is now fixed on the upcoming Q4 FY2025 results, due May 7, 2025, with expectations of a final dividend announcement. This event could act as a near-term catalyst, offering fresh insights into earnings momentum and cash flow generation after a period marked by a 17.5% annual decline in consolidated net profit for Q3. Market participants are leveraging this data point to recalibrate their views on Coal India’s valuation and payout potential amidst a technical landscape that remains neutral to mildly bearish, thereby providing both a test and an opportunity for the stock’s medium-term sentiment.
FAQ
What is the latest dividend for Coal India stock?
Coal India currently pays regular dividends. The most recent dividend payout was ₹5.60 per share (ex-date: January 31, 2025), following two other installments of ₹15.75 and ₹5.00 per share during FY2025. The trailing annual dividend amounts to ₹26.35 per share, reflecting a robust distribution policy. Coal India is known for its consistently high dividend yield and is favored by income-focused investors, with a five-year average yield above most peers in the market.
What is the forecast for Coal India stock in 2025, 2026, and 2027?
Based on the current share price of ₹385.60, the projected values are: ₹501.30 at the end of 2025, ₹578.40 at the end of 2026, and ₹771.20 at the end of 2027. These expectations align with the company's strong fundamentals, low valuation, and strategic initiatives in boosting production and future growth. The mining sector also benefits from stable demand for coal, supporting mid-term optimism for Coal India’s stock performance.
Should I sell my Coal India shares?
Coal India demonstrates solid fundamentals, including a dominant industry position, attractive dividends, and a strong balance sheet with minimal debt. Despite short-term market fluctuations and technical caution, the company’s resilience, substantial government backing, and historical performance suggest it may be wise for investors to consider holding their shares. For those seeking stable income and medium- to long-term growth, maintaining exposure to Coal India could complement a diversified portfolio.
Are dividends from Coal India stock taxable in India?
Yes, dividends received from Coal India are taxable in the hands of individual investors according to their personal income tax slab. There is no separate dividend distribution tax at the company level under current law. Tax deducted at source (TDS) is applicable if annual dividends exceed ₹5,000 per shareholder per year. Investors should account for this when planning their tax liabilities on dividend income.
What is the latest dividend for Coal India stock?
Coal India currently pays regular dividends. The most recent dividend payout was ₹5.60 per share (ex-date: January 31, 2025), following two other installments of ₹15.75 and ₹5.00 per share during FY2025. The trailing annual dividend amounts to ₹26.35 per share, reflecting a robust distribution policy. Coal India is known for its consistently high dividend yield and is favored by income-focused investors, with a five-year average yield above most peers in the market.
What is the forecast for Coal India stock in 2025, 2026, and 2027?
Based on the current share price of ₹385.60, the projected values are: ₹501.30 at the end of 2025, ₹578.40 at the end of 2026, and ₹771.20 at the end of 2027. These expectations align with the company's strong fundamentals, low valuation, and strategic initiatives in boosting production and future growth. The mining sector also benefits from stable demand for coal, supporting mid-term optimism for Coal India’s stock performance.
Should I sell my Coal India shares?
Coal India demonstrates solid fundamentals, including a dominant industry position, attractive dividends, and a strong balance sheet with minimal debt. Despite short-term market fluctuations and technical caution, the company’s resilience, substantial government backing, and historical performance suggest it may be wise for investors to consider holding their shares. For those seeking stable income and medium- to long-term growth, maintaining exposure to Coal India could complement a diversified portfolio.
Are dividends from Coal India stock taxable in India?
Yes, dividends received from Coal India are taxable in the hands of individual investors according to their personal income tax slab. There is no separate dividend distribution tax at the company level under current law. Tax deducted at source (TDS) is applicable if annual dividends exceed ₹5,000 per shareholder per year. Investors should account for this when planning their tax liabilities on dividend income.
